| Mon 7 Nov 2011, 15:01 | | PLN - Platmin Limited - Mining contract Re-Organisation gathers momentum |
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PLN
PLN
PLN - Platmin Limited - Mining contract Re-Organisation gathers momentum
Platmin Limited
Incorporated in the accordance with the laws of Canada
Registration number: 610178-0
Share code on TSX: PPN
Share code on JSE: PLN
ISIN: CA72765Y1097
MINING CONTRACT RE-ORGANISATION GATHERS MOMENTUM
Metal output recovering
November 7, 2011, TORONTO: Platmin Limited ("Platmin" or "the Company") today
announced production results from the Pilanesberg Platinum Mine ("PPM") for the
quarter ended September 30, 2011. This release should be read in conjunction
with the Company`s September 30, 2011 Management Discussion & Analysis ("MDA"),
which is available at www.platmin.com and filed on www.sedar.com.
Operations
Subsequent to the riot on June 23, 2011 and strike action during most of July
2011, waste stripping quickly recovered to above 1 million bulk cubic metres
(mbcm) in August and September 2011. This was the direct result of renewed
cooperation between MCC Contracts (Pty) Ltd ("MCC"), its workforce and the
National Union of Mineworkers. Industrial relations interventions by external
professionals are expediting the recovery.
The mining contract reorganisation, which involves splitting responsibility for
the mining sub-cycles of drilling, blasting, waste overburden stripping and
reefing, gathered momentum. Specialisation is allowing contractors to focus on
core strengths and direct reporting by these contractors to PPM facilitating
improved control of operations.
Eagle International Drilling & Blasting was appointed as drilling contractor
during the quarter, reporting directly to PPM management. This new arrangement
is working well and is expected to deliver improved pit conditions and direct
control of mineral resource management to PPM.
Explotech (MCC`s blasting division), reported directly to PPM management from Q3
2011.
MCC is contracted to strip 1.25 mbcm of overburden waste per month, drawing on
its core strengths. Benhaus Mining (Pty) Ltd and Trollope Mining Services (Pty)
Ltd came to site at the end of Q3 FY2011 as reefing contractors. Each has been
contracted to load and haul a minimum of 300,000 bcm per month of reef and
internal waste. Both contractors have extensive experience in narrow reef
mining and local industrial relations.
Sales of 4E PGM ounces (oz) for Q3 FY2011 were 13 640 oz, compared to 13 788 oz
for Q3 FY2010. Of the current quarter sales, more than 6 000 oz were dispatched
in September, demonstrating the recovery from the effects of the June 23 riot.
Commenting on the quarter under review, Platmin CEO Tom Dale noted that "Good
progress has been made with the separation of responsibilities and reporting
structures for drilling, blasting and load/haul. However we need the full
support of the workforce to achieve our objectives and intensive industrial
relations efforts are underway. These have helped us to achieve a good but not
yet complete recovery of metal production since the riot. I am also delighted
to report that no lost time injuries occurred during Q3 FY2011"
Platmin completed a diamond drilling program during the quarter which will
facilitate the upgrade of the metal inventory of the Extended Tuschenkomst
(including Sedibelo West) to reserve status. The results of this program, which
will include Life of Mine revisions, will be tabled in the FY2011 annual
financial statements, which are due at the end of Q1 FY2012.
The company is in close contact with the DMR on its application to amend the EMP
for the Tuschenkomst pit on closure (refer section 8 of the MDA).
Financial Performance
Sales revenue for the quarter ended September 2011 was USD22.6 million (June
quarter: USD34.5 million). This decrease was due mainly to lower metal sales, as
a result of the strike. Basket metal prices averaged about USD1500/oz reflecting
a marked softening towards the end of the quarter. The weaker ZAR has offset
softer USD prices to a degree.
As announced on 1 November 2011, the Company has completed its delisting from
AIM but remains listed on the TSX and JSE. Shareholders are referred to the
notice of special meeting, released today, dealing with the convening of a
special meeting regarding further corporate restructuring proposals.
Outlook
Tom Dale summed up the challenges: "We have consistently achieved daily metal
production targets when fresh ore has been delivered to the concentrator. The
major obstacle to achieving metal production forecasts has been the inability to
deliver planned volumes of waste and ore. The load/haul capacity being brought
to site during Q4 FY2011 will powerfully address this issue. "
For further information:
Charmane Russell
Russell and Associates
+27 11 880 3924
+27 82 372 5816
Craig Shaw
Platmin Limited
+27 12 661 4280
Cautionary note regarding forward-looking statements
This market release contains "forward-looking information" which may include,
but is not limited to, statements with respect to the future financial and
operating performance of Platmin Limited (the "Company" or "Platmin"), its
subsidiaries and affiliated companies (which together with Platmin is referred
to as "the Platmin Group" or "the Group"), and its mineral projects, the future
price of 4E PGMs (being platinum, palladium, rhodium and gold), 4E PGM
production levels, mining rates, the future price of other base metals, future
exchange rates, the estimation of mineral resources and reserves, the
realization of mineral resource estimates or their conversion into reserves,
costs and future costs of production, capital and exploration expenditures,
including ongoing capital expenditure at PPM, costs and timing of the
development of new deposits, costs and timing of the development of new mines,
costs and timing of future exploration, requirements for additional capital,
government regulation of mining operations and exploration operations, timing
and receipt of approvals, licenses, and conversions under South African mineral
legislation, environmental risks, title disputes or claims, limitations of
insurance coverage and the timing and outcome of regulatory matters. Often, but
not always, forward-looking statements can be identified by the use of words
such as "plans", "expects", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates", "targeted" or "believes" or variations
(including negative variations) of such words and phrases, or state that certain
actions, events or results "may", "could", "would", "might" or "will" be taken,
occur or be achieved.
Forward-looking statements in this market release, amongst others, forecast
production reaching a monthly rate of 12,000 4E PGM ounces by mid 2012; approval
of an amended environmental management plan; recovery rates and grade; targets,
estimates and assumptions in respect of 4E PGM prices and production; allocation
of funds for current commitments; and the timing and completion of definitive
feasibility engineering studies at the Mphahlele, Grootboom and Loskop Projects.
Such forward-looking statements are based on a number of material factors and
assumptions, including, that contracted parties provide goods and/or services on
the agreed time frames, that budgets and production forecasts are accurate, that
equipment necessary for construction and development is available as scheduled
and does not incur unforeseen break downs, that no labour shortages or delays
are incurred, that plant and equipment function as specified, that geological or
financial parameters do not necessitate future mine plan changes, that no
unusual geological or technical problems occur, and that grades and recovery
rates are as anticipated in mine planning.
Forward-looking statements involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or achievements of
the Company to be materially different from any future results, performance or
achievements expressed or implied by the forward-looking statements. Such
factors include, among others, general business, economic, competitive,
political and social uncertainties; the actual results of current exploration
and mining activities; development and operational risks; title risks;
regulatory risks; conclusions of economic evaluations and studies; fluctuations
in the value of the United States dollar relative to the Canadian dollar or
South African rand; changes in project parameters as plans continue to be
refined; future prices of 4E PGM metals; possible variations of ore grade or
recovery rates (including the existence of potholes, faults and other geological
conditions that may affect the existence or recovery of resources and reserves);
failure of plant, equipment or processes to operate as anticipated; accidents,
labour disputes, industrial unrest and strikes and other risks of the mining
industry; political instability, insurrection or war; the effect of HIV/AIDS on
labour force availability and turnover; delays in obtaining governmental
approvals or financing or in the completion of development or construction
activities, as well as those factors communicated in the section entitled "Risk
Factors" of Platmin`s current annual information form ("AIF") and its final
short form prospectus dated May 5, 2010, which can both be viewed at
www.sedar.com. Although Platmin has attempted to identify important factors that
could cause actual actions, events or results to differ materially from those
described in forward-looking statements, there may be other factors that cause
actions, events or results to differ from those anticipated, estimated or
intended.
Forward-looking statements contained herein are made as of the date of this
market release and Platmin disclaims any obligation to update any forward-
looking statements, whether as a result of new information, future events or
results or otherwise. There can be no assurance that forward-looking statements
will prove to be accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly, readers
should not place undue reliance on forward-looking statements due to the
inherent uncertainty therein.
Date: 07/11/2011 15:01:19 Produced by the JSE SENS Department.
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